Epic Games recently launched a free edition of their Unreal Engine 3 game engine, known as the Unreal Development Kit. It's a fully featured binary-only version of Unreal Engine 3, and it comes with a stripped down demo of UT3 as an example game, and the associated example content.

It has all of the features of the current version of Unreal Engine 3 (currently at 3.5, with their LightMass technology, and their new dynamic shadow system). It's totally free for non-commercial use, however for commercial use, it's $99 for a royalty supported license (no royalties are applied for the first $5000 of revenue), or $2,500 for a single development seat.

So, any bets on the shitfest of fan games to be made using this amazing technology? :p

This is nice now normal people can make pro level games. The physics and graphics are amazing and the editor is powerful yet easy to use. Sadly there is only LAN no online play and I don't think this engine supports DirectX 11. Oh and I heard Ashura Dark Reign is now being made with this engine.